TMI Blog2023 (1) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... pra. The Applicant takes the copra cuts into half, sun dries and segregates manually based on the round shape of copra, free of dirt/dust and send it as edible copra and the rest of copra which are irregularly shaped, dusty are sent to oil milling units. But as the Circular clearly states, Copra is classified under heading 1203 irrespective of use - Hence, the impugned goods of the Applicant is only Copra and the same shall be classified under Heading 1203 thereby attracting GST rate of 5% vide entry at SI.No. 66 of Schedule I of 1/2017-Central Taxes (Rate) dated 28.06.2017. - TN/37/AAR/2022 - - - Dated:- 30-11-2022 - SHRI. R. GOPALSAMY, I.R.S., AND TMT. N. USHA, MEMBER 1. Any appeal against this Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, under Sub-section (1) of Section 100 of Central Goods and Service Tax Act / Tamil Nadu Goods and Service Tax Act 2017 ( the Act in short) within 30 days from the date on which the ruling sought to be appealed against is communicated. 2. In terms of Section 103 (1) of the Act, this Advance ruling pronounced by the Authority under Chapter XVII of the Act shall be binding onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Dried coconut (copra) which is edible for human consumption, shall be polished, edges corrected and dirt will be removed manually so as to make it ready for human consumption On the other hand, the left-out copra in the field (milling copra) which is not fit for human consumption will be sold to oil mills for oil extraction, without any further polishing or dust removing process. 2.0 The Applicant has stated, inter-alia, that they are paying 5% GST rate for both Dried coconut and milling copra. Now, the Applicant desires the clarification as to whether the edible copra (dried coconut) shall be classified under HSN 08011920 and taxed at NIL GST rate. Along with form GST ARA 01 the applicant has attached copies of HSN and journal on European Union showing that Coconut fresh or dried, whether or not shelled or peeled under Chapter 0801. Also, they had submitted copy of AAR Order No. 39/ARA/2019 dated 27.08.2019 in the case of M/s Shree Parshwanath Corporation and copy of step by step guide to produce edible copra and milling copra in their factory, supported by photos. 3.0 Personal hearing was held in digital platform on 15.06.2022, wherein Shri. Vivek Sharma, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onth. AR further submitted that they are applying 5% tax rate for both edible and milling copra at present. 4.0 The Central Jurisdictional Authority, namely, the Coimbatore Commissionerate, had submitted that there was no pending proceeding against the applicant. They had further submitted their comments on the subject which can be summarized as under: The Applicant has dried half cut coconuts in their mill yard on black stone under sun. With respect to copra selected for human consumption, soil and dirt are removed manually and other copra are sent to oil mills for extraction of oil. Hence, the criteria for segregating the type meant for extraction of oil and for human consumption is the presence or absence of soil and dirt. Normally, dried edible copra is of higher quality and is processed by heating for removal of water to prevent microbial growth. The product which is food grade shall be white in colour, free from foreign matter, living insects, mould, dead insects, insect fragments and rodent contamination. The product shall have pleasant taste and flavour, free from rancidity and evidence of fermentation. The product may contain food additives permitted by FSSA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SGST 2.5%). The relevant portion of Notification no. 1/2017 Central Tax Rate dated the 28th June, 2017 are as under: 66. 1203 Copra other than of seed quality 5.3 The short point that arises in the instant case is whether the goods in question viz., dried coconuts (copra in trade parlance) meant for human consumption merit classification in Chapter Heading 0801 thereby attracting Nil rate or in Chapter Heading 1203 thereby attracting 5% GST (CGST 2.5%+ SGST 2.5%). 5.4 The step by step guide with photographs given by the Applicant details the production of edible copra and milling copra as under: i) First, the coconuts are cut into half and sun dried. ii) Then, they are deshelled and further dried on black stone resulting in unsegregated coconut copra commonly known as Sada Copra. iii) Later, the selection of edible copra from milling copra is done manually. These selected edible copra are polished and cut for a round, circular cup like finish. iv) These round, circular cup shaped copra are hand cleaned to remove any soil or dirt and edges are smoothened to get copra nut for edible co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the Circular cited supra clearly clarifies that the whole unbroken kernel could be taken out of shell only when it converts to copra. The Applicant takes the copra cuts into half, sun dries and segregates manually based on the round shape of copra, free of dirt/dust and send it as edible copra and the rest of copra which are irregularly shaped, dusty are sent to oil milling units. But as the Circular clearly states, Copra is classified under heading 1203 irrespective of use. Hence, the impugned goods of the Applicant is only Copra and the same shall be classified under Heading 1203 thereby attracting GST rate of 5% vide entry at SI.No. 66 of Schedule I of 1/2017-Central Taxes (Rate) dated 28.06.2017. 5.8 The Applicant has cited Authority for Advance Ruling, Tamilnadu s Order no. 39/ARA/2019 dated 27.08.2019 as evidence in his favour. But, on perusal of the said Order we find that the order pertains to the withdrawal of application by that applicant and merits of the case were not looked into by the Members of the AAR and hence, it is not relevant to the issue in hand. 5.9 In view of the foregoing, We rule as under: RULING The goods supplied by the Applicant are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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